Franklin Templeton Investing Maxims

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Templeton Maxims1 0 P R I N C I P L E S F O R

I N V E S T M E N T S U C C E S S


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Invest for Real Returns

Keep an Open Mind

Never Follow the Crowd

Everything Changes

Avoid the Popular

Learn from your Mistakes

Buy During Times of Pessimism

Hunt for Value and Bargains

Search Worldwide

No-one Knows Everything

Templeton Maxims


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Franklin Templeton Investments

Sir John Templeton - founder of the Templeton organisation -

is regarded as one of the world's wisest and most respected

investors.

Forbes magazine has described him as "the dean of global

investing," and "one of the most successful money managers

in history".

These principles are among those that Sir John considers to be

of enduring value to investors.

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Maxim Number 1

The true objective for any long-term investor is maximum total

real return after taxes.

Invest for Real Returns

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Maxim Number 2

Never adopt permanently any type of asset or any selection

method. Try to stay flexible, open minded and sceptical. Long-

term top results are achieved only by changing from popular to

unpopular the types of securities you favour and your methods

of selection.

Keep an Open Mind

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Maxim Number 3

If you buy the same securities as other people, you will have

the same results as other people. It is impossible to produce a

superior performance unless you do something different

from the majority.

To buy when others are despondently selling and to sell when

others are greedily buying requires the greatest fortitude andpays the greatest reward.

Never Follow the Crowd

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Maxim Number 4

Bear markets have always been temporary. And so have bull

markets. Share prices usually turn upward from one to twelve

months before the bottom of the business cycle and vice versa. If a

particular industry or type of security becomes popular with

investors, that popularity will always prove temporary and, when

lost, may not return for many years.

Everything Changes

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Maxim Number 5

When any method for selecting stocks becomes popular, then

switch to unpopular methods.

Too many investors can spoil any share selection method or any

market timing formula.

Avoid the Popular

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Maxim Number 6

This time is different

are among the most costly four words in market history.

Learn from your Mistakes

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Maxim Number 7

Bull markets are born on pessimism, grow on scepticism, mature

on optimism and die on euphoria.

The time of maximum pessimism is the best time to buy, and the

time of maximum optimism is the best time to sell.

Buy During Times of

Pessimism

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Maxim Number 8

Too many investors focus on outlook and trend. Therefore,

more profit is made by focusing on value.

In the stock market the only way to get a bargain is to buy what

most investors are selling.

Hunt for Value and Bargains

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Maxim Number 9

To avoid having all your eggs in the wrong basket at the wrong

time, every investor should diversify.

If you search worldwide, you will find more bargains andbetter bargains than by studying only one nation. You also gain

the safety of diversification.

Search Worldwide

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Maxim Number 10

An investor who has all the answers doesn't even understand

the questions.

No-one Knows Everything

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Sir John Templeton has retired and is no longer involved in the

investment decisions made by the organisation he founded.

Templeton fund managers, however, still follow the investment

principles he laid down.

Today, Templeton is part of Franklin Templeton Investments, a

worldwide investment group with over $484 billion* under

management, offering a unique breadth of products and styles ofinvestment - from pure growth to deep value - all under one roof.

*Source: Franklin Templeton Investments, all data as at 31.01.06, unless otherwise stated.

This document is issued by Franklin Templeton Investment Management Limited authorised andregulated in the UK by the Financial Services Authority, in South Africa by the Financial Services Boardand is authorised to conduct investment business in Sweden by the Finansinspektionen, in Norway withKredittilsynet, and in Finland with Rahoitustarkastuksen. It should not be construed as an invitation oroffer to invest in any funds offered by Franklin Templeton Investments. Investments may only be madeon the basis of a current brochure and prospectus. With any investment, past performance is notnecessarily a guide to future return. Values may fall as well as rise and investors may not get back thefull amount invested.


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FTI MAXIMS BGB 01/06

UK Office:

Franklin Templeton InvestmentsThe Adelphi1-11 John Adam StreetLondon WC2N 6HT

Client Dealer Services:UK Freefone: 0800 305 306Tel: +44 (0)20 7073 8690Fax: +44 (0)20 7073 [email protected]

www.franklintempleton.co.uk

Nordic Office:

Franklin Templeton InvestmentsStureplan 4CS-114 35 StockholmTel: +46 (0)8 545 [email protected]

www.franklintempletonnordic.com

South Africa Office:

Templeton Asset Management LtdHarrow Court II, Isle of HoughtonBoundary Road, Parktown 2193P.O. Box 87587, Houghton2041, South Africa

Tel: 27.11.645 6500Fax: 27.11.484 3311

www.franklintempleton.co.za

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Franklin Templeton Investing Maxims